Item #1 - Water/Wastewater Semi-Annual Impact Fee Report — original pdf

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CITY OF AUSTIN, TEXAS AUSTIN WATER SEMI-ANNUAL IMPACT FEE COLLECTIONS REPORT April 1, 2023 through September 30, 2023  City of Austin | Austin Water P.O. Box 1088 Austin, TX 78767 AustinWater.org Martin Tower, P.E., Managing Engineer, Austin Water Nam Nguyen, Financial Manager II, Austin Water January 10, 2024 Semi-Annual Impact Fee Collections Report for April 1, 2023 to September 30, 2023 MEMORANDUM To: From: Date: Subject: The Semi-Annual Impact Fee Collections Report as of September 30, 2023, is attached for your reference. The report is based on financial information reported in the City’s accounting system, ADV3, and in AMANDA, one of the City’s accounts receivable systems. Water fees collected during this six-month reporting period were $4,876,076 lower than the amount collected during the April through September reporting period a year prior; wastewater fees collected were $2,224,149 lower than those collected during the same period one year ago. Interest earnings for the six-month period equaled $618,860. The combined utility impact fees collected, plus interest, during the six-month period totaled $15,906,125. Of this total, $10,826,393 was for water and $5,079,732 was for wastewater. The combined utility impact fees collected, plus interest, during Fiscal Year 2023 totaled $30,662,889. Of this total, $21,284,888 was for water and $9,378,001 was for wastewater. Total combined utility impact fees collected, plus interest, since the adoption of the current ordinance on June 20, 1990, through September 30, 2023, equal $478,168,880. Of this total, $323,659,817 was collected for water and $154,509,063 was collected for wastewater. As of September 30, 2023, the cash balances in the water and wastewater impact fee funds were $23,021,414 and $16,783,603 respectively, for a combined total of $39,805,017. Please let me know if you have any questions or need additional information. I can be reached at 512-972-0048. Cc: Shay Roalson, Director Joseph Gonzales, Assistant Director, Financial Services Christina Romero, Financial Manager III, Financial Services Frida Guo, Financial Manager II, Financial Services Jonathan Orenstein, Financial Manager III, Consumer Services Division Teresa Lutes, P.E., Managing Engineer, Systems Planning Division Attachment: Semi-Annual Impact Fee Collections Report  Texas Local Government Code, Chapter 395, Section 395.058, requires that the Impact Fee Advisory Committee “file semiannual reports with respect to the progress of the capital improvements plan and report to the political subdivision any perceived inequities in implementing the plan or imposing the impact fee.” This report supports the committee by providing financial information about the collection of impact fees, and the value of fee waivers and exemptions. Waivers are granted for policy reasons or are negotiated by City Council; exemptions are allowed under legal code or statute. In this report waivers and exemptions are grouped into one “waivers/exemptions” category. Adjustments are also made in situations in which fees are not owed. Since adjustments are not comparable to waivers/exemptions and do not affect the reporting of fee collection data, adjustments are not included in this report. Impact fees are collected, waived/exempted, and adjusted by both Water and Wastewater.  Pages 1 and 2 (Charts 1 through 3) detail the impact fees collected by the Combined utility, Water, and Wastewater, detailing fee collection and interest earnings by fiscal year.  Page 3 (Charts 4 and 5) details the total amount waived/exempted by the Water utility, and the value of waivers/exemptions by category. These charts report data on a semi- annual basis, with reporting periods spanning April 1 through September 30.  Page 4 (Charts 6 and 7) is similar to Charts 4 and 5 but report the information regarding waivers/exemptions granted by the Wastewater utility.  Page 5 (Charts 8 and 9) report Capital Recovery Fee Collections by month for the current and prior fiscal year for Water and Wastewater.  Page 6 (Chart 10) Fee Waivers by month and by type for the current fiscal year.  Page 7 (Chart 11) Affordable Housing Waivers by Development with units by fiscal year  Page 8: Impact Fee Collections Summary inception to date with current six-month period. Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Chart 1: Combined Utility Impact Fee Collections and Waivers $48,000,000 $44,000,000 $40,000,000 $36,000,000 $32,000,000 $28,000,000 $24,000,000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 $32,000,000 $28,000,000 $24,000,000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 e u n e v e R e u n e v e R             Source Interest Earned FY2019 FY2020 FY 2021 FY 2022 $723,040 $467,583 $99,165 $268,007 FY 2023 $1,063,626 Impact Fees $35,384,631 $37,621,547 $44,175,852 $38,673,729 $29,599,264 Waivers $4,333,534 $3,923,002 $3,227,467 $3,794,683 $2,862,383 Chart 2: Water Impact Fee Collections and Waivers Source FY2019 FY2020 FY 2021 FY 2022 FY 2023 Interest Earned $571,587 $361,991 $71,034 $180,122 $606,623 Impact Fees $25,781,814 $26,787,601 $30,513,872 $26,643,961 $20,678,266 Waivers $2,930,515 $2,856,615 $2,335,810 $2,641,835 $1,700,882 1      Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Chart 3: Wastewater Impact Fee Collections and Waivers Source Interest Earned FY2019 $151,454 FY2020 FY 2021 FY 2022 FY 2023 $105,591 $28,131 $87,884 $457,002 Impact Fees $9,602,817 $10,833,946 $13,661,980 $12,029,767 $8,920,998 $1,403,019 $1,066,387 $891,657 $1,152,848 $1,161,501   Waivers $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 e u n e v e R     2  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Chart 4: Water Impact Fees and Waivers/Exemptions $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0     t n u o m A l a t o T d e v a W i t n u o m A   Waivers/Exemptions $2,119,928 $736,688 $823,263 $1,512,548 $1,342,444 $1,299,391 $1,201,696 $499,185 Mar -20 Sep - 20 Mar - 21 Sep - 21 Mar - 22 Sep - 22 Mar - 23 Sep - 23 $13,631,599 $13,156,003 $9,761,647 $20,752,225 $11,285,432 $15,358,529 $10,195,812 $10,482,454 Water Impact Fees Total Fees and Waivers/Exemptions Waivers as % of Fees & Waivers   $15,751,526 $13,892,690 $10,584,910 $22,264,773 $12,627,876 $16,657,921 $11,397,508 $10,981,639 13.5% 5.3% 7.8% 6.8% 10.6% 7.8% 10.5% 4.5%   Chart 5: Water Impact Fee Waivers/Exemptions by Type Waiver/Exemption Type Mar -20 Sep - 20 Mar - 21 Sep - 21 Sep - 22 Mar - 23 Sep - 23 Affordable Housing $1,007,628 $305,938 Council Developer Agreement $619,550 $212,300 $478,038 $98,700 $790,948 $305,100 Mar - 22 $771,794 $304,650 $804,241 $202,600 $12,000 $877,446 $347,835 $37,600 $32,950 $2,250 $13,650 Government Other Waivers $105,450 $132,200 $100,500 $56,600 $101,800 $387,300 $86,250 $146,025 $359,900 $164,200 $280,550 $253,700 $135,450 Total Waivers/ Exemptions Affordable Housing Units $2,119,928 237 $736,688 94 $823,263 118 $1,512,548 226 $1,342,444 165 $1,299,391 187 $1,201,696 220 $499,185 335 Maximum exempted units 1500 1500 1500 1500 1500 1500 1500 1500   3  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Chart 6: Wastewater Impact Fees and Waivers/Exemptions $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0     t n u o m A l a t o T d e v a W i t n u o m A   Waivers/Exemptions WW Impact Fees Total Fees and Waivers/Exemptions Waivers as % of Fees & Waivers   Mar -20 Sep - 20 Mar - 21 Sep - 21 Mar - 22 Sep - 22 Mar - 23 Sep - 23 $841,574 $224,813 $211,781 $679,876 $760,338 $392,510 $818,719 $342,782 $5,269,273 $5,564,673 $4,204,895 $9,457,085 $5,000,807 $7,028,961 $4,116,187 $4,804,812 $6,110,847 $5,789,485 $4,416,676 $10,136,961 $5,761,145 $7,421,471 $4,934,906 $5,147,594 13.8% 3.9% 4.8% 6.7% 13.2% 5.3% 16.6% 6.7%   Chart 7: Wastewater Impact Fee Waivers/Exemptions by Type Waiver/Exemption Type Mar -20 Sep - 20 Mar - 21 Sep - 21 Sep - 22 Mar - 23 Sep - 23 Affordable Housing $417,124 $108,213 $109,531 $449,426 Council Developer Agreements $265,750 $77,800 Government Other Waivers $21,000 $137,700 $27,200 $11,600 $17,200 $36,450 $48,600 $37,600 $21,200 $171,650 Mar - 22 $446,238 $156,950 $79,250 $77,900 $162,710 $112,500 $0 $117,300 $470,919 $202,200 $22,200 $123,400 $198,532 $59,300 $6,400 $78,550 Total Waivers/ Exemptions $841,574 $224,813 $211,781 $679,876 $760,338 $392,510 $818,719 $342,782 4  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Capital Recovery Fee Collections Chart 8: Water CRF Collections by Month 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 ) $ ( s r a l l o D f o s n o i l l i M ) $ ( s r a l l o D f o s n o i l l i M                                 Water FY'23 Actual FY'22 Actual Oct $1.85 $1.80 Nov 1.26 1.56 Dec 1.72 1.91 Jan 1.88 2.20 Feb 1.69 1.29 Mar 2.05 2.54 Apr 2.05 3.56 May 1.35 3.27 Jun 2.06 2.63 Jul 1.90 2.20 Aug 1.61 1.63 Sep FY2023 1.85 2.23 $21.28 $26.82   Chart 9: Wastewater CRF Collections by Month Wastewater FY'23 Actual FY'22 Actual Oct $.77 $.88 Nov .52 .64 Dec .72 .93 Jan .69 .90 Feb .76 .60 Mar .84 1.05 Apr .95 1.48 May .66 1.52 Jun .89 1.24 Jul .85 .97 Aug .70 .69 Sep FY2023 1.03 1.21 $9.38 $12.12   5  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 Chart 10: Fee Waivers by Month 800 700 600 500 400 300 200 100       ) $ ( s r a l l o D f o s d n a s u o h T fees.       Affordable Housing (*) Council Developer Government Other Waivers Total Oct $155.8 $45.0 $5.2 $111.6 Nov 138.8 .0 28.4 64.8 Dec 652.8 55.0 11.7 4.5 Jan 69.6 114.8 .0 40.9 Feb 59.2 .0 .0 Mar 272.1 25.0 9.9 Apr 134.1 10.0 .0 May 43.8 .0 .0 28.8 126.6 115.2 26.4 Jun 152.2 20.0 .0 1.5 Jul 86.4 11.6 .0 .0 Aug 54.6 20.0 .0 63.6 Sep FY2023 75.4 $1,894.7 .0 $301.4 20.1 7.4 $75.2 $591.1 $317.6 $232.0 $724.0 $225.3 $88.0 $433.6 $259.3 $70.2 $173.7 $98.0 $138.2 $102.8 $2,862.4 Note: Combined water and wastewaters fee waivers Definitions: Affordable Housing: May not exempt more than 1,500 service units of affordable housing constructed each fiscal year from the requirement to pay impact fees. Service units of affordable housing within the development known as Robert Mueller Municipal Airport development. *Year-to-date, the total service units waived is 335. These units are primarily located in El Prado at Estancia, Goodnight Ranch and Mueller developments Annexation: Water and Wastewater impact fee may not be collected on a water connection that is annexed for full purposes by the City. Council Developer Agreements: This is for Council agreements/ordinances specifying the waiver of impact Government: Includes a) school waivers not required to pay impact fees imposed under this chapter. Senate Bill 883; b) State of Texas connections for a state owned building or property that is entirely occupied by a state agency c) community gardens that are city supported may not be assessed an impact fee. Other: Includes a)Fire protection may not be collected for a connection that is used to provide capacity only; b) Duplex 13-3A-10 (F)   6  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 City of Austin, Texas Austin Water Summary of Affordable Housing Waivers by Development October 1, 2022 through September 30, 2023 Type of Waiver/Exemption Affordable Housing Water $ 1,225,282 $ Wastewater 669,451 $ Combined Total Affordable Housing by Development TOTAL $ 1,225,282 $ 669,451 $ 1,894,733 1,894,733 Development Name NRP Group - El Prado at Estancia Mueller Section 9B Development Address NRP Group - El Prado at Estanci McBee-Robert Browning Levander Loop 1600 E 3rd Street David Weekly Homes - Goodnight Ranch PUD Cowman Way Mueller Redevelopment: EHT of T EHT of Texas Austin Habitat for Humanity AISD Loyola Lane Goodnight Ranch Lot 3 Block A Condos, CND-G8935 Vertex Blvd Levander Loop Pathways at Chalmers Courts West The Muskin Company- Yager Ln Foundation Communities - Parker Apartments 2105 Parker Ln Yager Ln Mueller Section 9 Saison North LLC Scenic Point - Phase II Espero Austin at Rutland LLC Tillery 4-Acre Project Talia at E St Johns LLC 2513 Seton 1000 E Yager Ln David Weekley Homes - Mueller S 10010 N Capital of Texas Highwa 7204/7208 Boyle Dr Espero Austin at Rutland 1126 Tillery Street 1021 E St Johns Ave 2513 Seton Avenue 1000 E Yager Ln TOTAL Fees Waived 486,000 340,313 270,000 159,513 142,900 137,750 126,000 68,040 40,500 33,000 30,000 13,650 13,500 11,500 9,200 7,000 2,600 2,500 767 1,894,733 Service Units Waived 68 47 38 22 21 20 18 9 6 30 30 0 2 13 8 0 2 3 1 335 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (*) Service units waived for these addresses are on the water permits Chart 11: Combined Utility Affordable Housing waivers $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY2019 FY2020 FY2021 FY2022 FY2023 Affordable Housing $2,628,034 $1,838,902 $1,827,942 $2,184,983 $1,894,733 Affordable Housing units Maximum allowable units 382 1500 331 1500 344 1500 352 1500 335 1500 7  Semi-Annual Impact Fee Collections Report April 1, 2023 through September 30, 2023 City of Austin, Texas Austin Water Impact Fee Collections Summary Austin Water Description Water Wastewater Total SIX MONTHS ENDED: April 1, 2023 through September 30, 2023 Total Dollar Value of Taps & Connections Impact Fee Waivers/Exemptions Net Impact Fees Collected 10,981,639 (499,185) 5,147,594 (342,782) 16,129,233 (841,967) $ 10,482,454 $ 4,804,812 $ 15,287,265 Interest Earnings $ 343,939 $ 274,921 $ 618,860 Total Impact Fees Collected $ 10,826,393 $ 5,079,732 $ 15,906,125 INCEPTION TO DATE: June 20, 1990 – September 30, 2023 Total Impact Fees collected by the City of Austin since the adoption of the current Impact Fee Ordinance from June 1990 (19900607-F) to-date are shown below. Total Impact Fees Collected $ 316,970,078 6,689,739 323,659,817 $ 150,759,810 3,749,253 154,509,063 $ 467,729,888 10,438,992 478,168,880 (218,919,450) (35,506,672) $ (46,801,328) 589,047 23,021,414 (87,479,732) (18,995,655) $ (31,784,345) 534,273 16,783,603 (306,399,182) (54,502,327) $ (78,585,673) 1,123,320 39,805,017 Impact Fee Cash Balances $ (83,768,766) (24,800,000) (31,000,000) - (43,600,000) $ (41,749,098) (9,400,000) (9,000,000) - (16,400,000) $ (125,517,864) (34,200,000) (40,000,000) - (60,000,000) (35,750,684) (10,930,634) (46,681,318) TOTAL $ (218,919,450) $ (87,479,732) $ (306,399,182) $ (35,506,672) $ (18,995,655) $ (54,502,327) - - - - - - - - - - - - - - - TOTAL $ (35,506,672) $ (18,995,655) $ (54,502,327) $ (46,801,328) - - - - $ (31,784,345) - - - - $ (78,585,673) - - - - - - - TOTAL $ (46,801,328) $ (31,784,345) $ (78,585,673) 8  * AW restricted the use of collected Impact Fees for defeasance of outstanding revenue bonds until FY 2002, at which time the AW's policy changed to allow Impact Fees to be used to fund certain major plant capacity improvements. ** In FY 2007, management decided to use Impact Fee collections to pay debt service. *** Includes transfers in for Fairway Ridge, Circle C, refunds and other miscellaneous adjustments.             Impact Fees Collected Interest Earnings Used for Debt Defeasance Used for CIP* Used for Debt Service** Other Adjustments*** FY 1992 thru 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2002* thru 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2007** thru 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Application of Impact Fee Funds for Debt Defeasance by Fiscal Year Application of Impact Fee Funds for Capital Projects by Fiscal Year Application of Impact Fee Funds for Debt Service by Fiscal Year